Dish TV in Rural India

8/11/2019 Dish TV in Rural India

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Team MindIt

Great Lakes Institute of Management Chennai

Trend chosen- The Small Town Indian rises

Team Members

Malhar D Lakdawala ([email protected]

Harsh Agarwal ([email protected])

Siddharth Mehta ([email protected])

Contact Details

+91 9176059722

+91 9769494336


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The Small Town Indian rises

Rural proliferation of Dish TV

Company

High disposable Income had facilitated them to buy television sets but services of cable TV were u

the launch of Dish TV, the whole gambit of viewership has changed. Moreover, Dish TV targeted ca

Current market shares of various players are as follows :-Dish TV : 30%

Sun Direct: 25%

Tata Sky: 22%

BIG TV : 13%

Airtel : 8%

D2H : 2%

The growth in the rural segment can be attributed to frequent power cuts in the rural areas. DTH platform gives the to their favorite programs, with the help of generator/ invertors, which is not possible with the cable service in most


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Quick Statistics

Digital TV penetration is 34 per cent in rural areas and 11.9 per cent in urban India.

Indian rural market generates about 50% of the countrys GDP. Small towns comprises around 840 million people.

According to data from National Sample Survey Organization (NSSO), rural consumption per person increased annual

20092012. The following figures reflect rural Indias significance to the countrys economy :

I n incremental terms, spending in rural I ndia dur ing the peri od 20092012 rose by US$ 69 billion to urban Indias US$

Defying logic, 70% of DTH connections in India are from rural and small towns (population under a million), as per a

research firm (Francis Kanoi)

Dish TV and DDs Direct Plus DTH service are the market leaders in Rural India, while Tata Sky, Dish TV and Sun Di

preferred brands in top metros.

Out of 13.2 million DTH subscribers, over seven million DTH subscribers are from rural markets alone.

___________________________________________________________________________________________

So, what explains the magic of DTH? Obviously, the key is its high-quality signal, especially for those consumers who

Also, it has provided customers the choice to see what they want rather than being at the mercy of the cable operator.

In India, DTH services are about customer service, viewing quality and value added services.

Spending patterns show a significant divergence across rural and urban India. While the mean household income of urb

increased 6% in rural India. Monthly ARPU in urban India fell ~15%, but showed a small increase in small towns.

DISH TVs are best as compared to city cable networks; because, it is easiest method to recharge through our mobiles/inchannels as per our choice and change the package also; there is very less maintenance and fast service.


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Brick N Click mAdvertisement in v

Various outdoor acpaintings, hoardingpromotion month.

Launched song as rules in small town

Launched dishsaw

Dish TV has a vast distribution of dealers& customer service across 6600 towns

Repackaging content as rural customers optfor Hindi content over English

Customer care services.

Customized services and packages as percustomer requirements.

No extra charge

Less time

No transportation c

The upper rural SE

Simplicity in Use

Good Mix of regional languages

Native Language would be preferable

Differentiating itself from time to timethrough its positioning and widedistribution.

Made website more user friendly Acceptability

Affordability

AwarenessAvailability

The 4A framework as adopted by Dish TV


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Inter firm rivalry

VERY HIGH

Price Wars

Non Price Wars

Threats of New Entrants

HIGHDTH market is having only 7

operators

Bargaining Power of Buyer

HIGH

Range of Options

Price Sensitive Buyers

Threats of Substitutes

VERY HIGH

Cable TVHigh

IPTVMedium

Terrestrial - Low

B

TranC

Crucial determinants in

the DTH Industry & Dish

TV


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Product

Multilingual GUI:The GUI of the Set Top Box software wasredesigned in multilingual form.

Regional Channel Offerings: To target rural audience, focus was onpromoting regional channel offering

Customized servicesand packages as per customer requirements.

Price

Subsidy on the hardware: Bundle Pricing of

Free subscription for initial months: By giDishTV boun

Focus on Prepaid Recharges: DishTV fo

Place

More Sales and Service Centres: DishTV increased no. of Salesand Service stores to 1,00,000 centres

Missed Call Service: Customers gave missed call to reach toDishTV customer care

Recharge Through IMPS: To facilitate small retailers to haveagency, recharge through IMPS was implemented

Promotion

Sales Promotion in Melas: DishTV promoted the

Brand Ambassador: Shahrukh Khan (As SRK and demographics and appeals to a universal audi

Tagline Changed

Demo Vans: The Demo Vans educated the mass abecame a tool for promotion

Festival Promotional Offers: like Diwali Doubleoffer

4P Strategy of DishTV totarget Rural Market


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- Growth for the digital

segment in rural areas

were 34%, 49% and 64% inthe past three years.

- 45mn customer base for

Dish TV as on 2013 out of

which 14.85mn customers

are from rural India.

- So, starting from 0 in

2004, it has now reached

14.85mn in 2013.

M k ti t t & it i t


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Marketing strategy & its impact

The strategy was to not concentrate on metros and large cities, where cable reigned supreme, and instand rural markets where laying cable was not viable and consumers were starved for good content. It

limited programming: essentially the Zee bouquet and a few other channels.

By 2008-09 Tata Sky, Airtel and Reliance Big TV were aggressively building their brand and increasing ththen empanelled Nielsen to conduct a research on the factors for considering a particular DTH brand an

considering Dish TV. They found out that consumers wanted more number of channels that satisfied their nwhen it comes to entertainment. The tagline: Sabse Zyada Entertainment took form, which emphasize

service, value and reach.

Then they launched a Rs 100 Happy Home Pack, which was customized to offer entertainment in all entertainment, sports, business, news, movies and cinema. The move witnessed 100% growth in sale

subscribers a day. Cashing in on the festive season, Dish TV added 3.4 lakh subscribers to its base.I

even during the economic slowdown and identified opportunities in the rural markets where the imp

The first phase of communication

focused on raising awarenessabout DTH services amongst the

target audience. With this idea of

tapping the potential in cable-dry

rural areas before going national,

Dish launched a campaign Dish

Har Chhat Par in 11 languages.

By 2006-07

Star and Sotake the nu

155. It adop

Bring Hom

motivate th

rationally a

to buy Dish

The company then

focused on empowering

the consumers by giving

them the control of what

they wanted with the new

tagline: Future of TV

entertainment.


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Ill help you Recharge campaign on Facebook Enter yoursubscription number and details, we will help you understand about the

application of it through our professionals.

Campaign - Amma let me

recharge for you DTH RecAttractive gift vouchersD

recharge and get a free vouc

Mobile recharge , DTH recha

Data card recharge

To ensure awareness first. Do some give way campaigns.

Promotions as suggested in the previous slides.

Then announce a Dish TV festival which will have ecents

like

Movie Screening

Lucky Draw

Meals/Snacks Comedy & Poetry shows

Meditation or health sessions for the elderly.

This will only be for those who have a Dish TV installed at

their homes. Thereby ensuring people buying it to enjoy

this benefit. The festival as such wont also cost us a lot.

It can also be spread across villages.

The way forward


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The way forward

Dish TV is buoyant about its one-upmanship in the DTH category.

Now that Dish TV is out with a brand new communication strategy to pull in more consumers, the challenge is to stamid the clutter created by new entrants. The growth strategy has to be largely customer cent

The brand has increased its distribution with live transmission in buses and trains. It has also made its headway in shbigger market share, Dish TV has tied up with yatra.com for applications like Travel Active; monster.com for M

shaadi.com for Shaadi Active Matrimonial.

It has introduced an interactive banking service with ICICI Bank and tied up with Caf Coffee Day and Kingfisher fthe brand has a wide distribution network and deep penetration in Tier II and Tier III markets, it feels the alliance need of an audience whose access to the internet is limited.

Yet, there are some major challenges which DTH has to combat. Its acquisition cost of a subscriber is more than douas it has to subsidize each set-top box by Rs 3,000 to Rs 3,500. The depreciation of the rupee has made it worse becaimported. DTH players recently passed on some of the costs to subscribers, but they cannot do so indefinitely when

penetration in the market. As a result, the bottom-line of most of them is under pressure and companies like Dish TVare in the red.

WHAT TO DO

Online portals are also expected to be instrumental for companies trying to access rural markets, in the

Gives demos at Mandis after crop season because farmers are cash rich & able to commit

The other concern is the tax burden on operators which is squeezing profitability. As much as 33 per cent of their government: 10 per cent as revenue share and another 23 per cent as service and entertainment tax (on an average; it

The DTH industry has been lobbying hard against it.

Companies entering rural emerging markets with new brands can also gain consumer trust by piggybackingon the trnon-profit organizations and local citizens. ITC, for example, chose to piggyback on the reputation of prominent fa

Choupal initiative to extend its distribution channel deep into rural communities in India.

Documents

Dish TV in Rural India